Schwerin Boyle Capital Management Inc

Item 5      Fees and Compensation

                       PORTFOLIO MANAGEMENT SERVICES FEES
As compensation for advisory services rendered to its SMA clients, Schwerin Boyle will charge
an annual fee of 1.0% of the net asset value of a client's account. We will bill quarterly at the
rate of 0.25% of the net asset value of a client's account at the end of each three-month period
on a calendar basis (the "Quarterly Fee"). In the investment advisory agreement, Schwerin
Boyle and each client agree that Schwerin Boyle can deduct fees directly from the client’s
managed account. However, clients can pay advisory fees directly or instruct Schwerin Boyle,
in writing, to bill a third party.
In the case of substantial additions or withdrawals of capital during a billing period, Schwerin
Boyle may increase or reduce the Quarterly Fee, as appropriate. We may negotiate the
Quarterly Fee with certain clients. Schwerin Boyle may charge certain of its clients a lower fee
if a client enters into a fee arrangement in lieu of commissions with certain brokerage firms, or
for other reasons. Schwerin Boyle does not charge fees until after service is provided; therefore
there is no procedure for client refunds.
Schwerin Boyle charges Double Play a quarterly management fee, payable in arrears, equal to
one eighth of one percent (.125%) of Double Play’s net assets (excluding the value of net assets
allocated to Eldaro, as general partner, and to limited partners who are also a Manager and/or
Member of Eldaro) calculated as of the close of business on the last day of the calendar quarter.
Eldaro receives no management fee but does receive performance-based compensation in the
form of an annual 15% incentive allocation in connection with services provided as general
partner to Double Play.

                                  GENERAL INFORMATION
Termination of the Advisory Relationship: An SMA client agreement may be canceled at
any time, by either party, for any reason upon receipt of written notice. In case of termination,
Schwerin Boyle’s fee will be pro-rated to the date of termination.

Cash Assets: Unless agreed otherwise, any and all account asset classes, including cash
positions, are included in the firm’s advisory fee calculation. At certain times our advisory fee
may exceed the money market yield for cash assets.

Additional Fees and Expenses: In addition to our advisory fees, SMA clients are also
responsible for the fees and expenses charged by custodians and imposed by broker dealers,
including trading commissions, other transaction charges, and custodial and account
maintenance fees. Please refer to the "Brokerage Practices" section (Item 12) of this Brochure
for additional information.
Advisory Fees in General: Clients should note that similar advisory services may be available
from other registered (or unregistered) investment advisers for similar or lower fees.
No Prepayment of Fees: Under no circumstances do we require or solicit payment of fees in
advance of services rendered.
Hedge Fund Expenses: In addition to the management fees and any performance-based
compensation, investors in Double Play also bear other expenses that are described in Double
Play’s Offering Memorandum.

Item 7      Types of Clients
Schwerin Boyle provides advisory services to the following types of clients:
• Individuals (other than high net worth individuals)
• High net worth individuals
• Pension and profit sharing plans (other than plan participants)

• Hedge funds and limited partnerships that have SMA accounts
• Charitable organizations
• Corporations or other businesses not listed above
• Double Play, a hedge fund
Schwerin Boyle requires a minimum of $1,000,000 of assets under management for SMA
clients. This account size may be negotiable under certain circumstances.
Requirements for investing in Double Play are contained in the fund’s offering materials.